Tips for Completing Form 471's Item 25D
~ Final Tip Especially Important ~
Message Posted February 3, 2005
Beginning this year, there is a new requirement -- Item 25D. It's in the certification (Block 6) section of the Form 471 and has been a challenge to some applicants. Below is a primer on Item 25, particularly Item 25D and 25F.
Item 25A, B, and C
The online system will automatically populate Items 25 A, B and C for you based on the amounts you've listed in Block 5. These items are:
A: the total pre-discount cost of all funding request in that 471,
B: the total amount you're requesting from the E-rate fund in that 471, and
C: the total applicant non-discounted share of all requests in that 471
(A - B = C).
Item 25D
Item 25D asks the applicant to list the total amount that they will be spending on all non-E-rate eligible technology expenditures for 2005-2006. The certification in previous years just asked applicants to check a box to certify that they have sufficient resources to make effective use of the services for which they are applying for E-rate. Now, after you enter your figure in Item 25D, the system will add Item 25C and Item 25D to actually show you how much you should have in your budget to be able to make this certification.
How should you calculate the amount to list in Item 25D?
According to the form instructions, Item 25D should include the amounts you will be spending in 2005-2006 for these items:
* All non-E-Rate hardware such as computers, printers, fax machines, video equipment, cameras, scanners, etc;
* Professional development - ongoing technology related training for all staff;
* Software;
* Maintenance: systems maintenance, salaries of technical staff; and
* Retrofitting and upgrading: wiring, electrical upgrades, asbestos removal, building renovations and repairs that are needed for technology.
What should you do if your 2005-2006 budget isn't ready yet?
If your draft budget isn't available yet, you should use the amounts that you spent in 2004-2005 as the basis of this figure. They will not ask you to update it later.
How exact do you have to be?
I wouldn't worry about getting this figure down to the exact dollar, but I wouldn't just list $100,000 (that too round of a number and looks like a guess). The SLD is most concerned with trying to make the applicant realize that you must have other funding in your budget and cannot rely solely on E-rate funding. However, if asked by the SLD to substantiate the amount you listed, you should be able to reasonably do so. You shouldn't ever list $0!
What should you do if you are submitting multiple 471s?
After you've determined this aggregate figure, use this same figure for all of your 471, Item 25Ds.
What is Item 25F?
It's a gotcha! NEVER check this box! If you do, I can guarantee an audit, selective review or denial. This asks if a service provider is providing you with any portion of your non-discounted funding or helped you to find the money. NEVER EVER EVER EVER CHECK THIS BOX.
I hope this Item 25 primer is helpful. If you have any questions, please e-mail me at jtschell@comcast.net.
Happy Filing!
-- Julie
Julie Tritt Schell
jtschell@comcast.net
(717) 730.7133 (voice)
(717) 730.9060 (fax)
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